grace period


: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.
Recent Examples on the Web After a seven-day grace period, Franklin University in Ohio, for instance, will impose an 18% finance charge on past-due balances, according to its website. Danielle Douglas-Gabriel The Washington Post, Arkansas Online, 16 Sep. 2023 The agency also may give the drug companies a grace period to swap ingredients in products, if required. Roni Caryn Rabin, New York Times, 13 Sep. 2023 Country Garden, China's biggest property developer and one of the world's most indebted, missed the initial due date of Aug. 7 on $22.5 million in interest on a pair of dollar bonds, but had a grace period ending Sept. 5-6. Harold Maass, The Week, 5 Sep. 2023 The idea is that loans might have below-market interest rates or grace periods for repayment. Max Bearak,, 4 Sep. 2023 From the online account portal to the grace period for late payments, nothing will come as a shock. Ashley Donohoe, Car and Driver, 1 Sep. 2023 The grace period was extended to a Jan. 21, 2024 hard deadline. Alex Hulvalchick, Chicago Tribune, 29 Aug. 2023 Country Garden still has a 30-day grace period before would be labeled as a defaulter. Ramishah Maruf, CNN, 9 Aug. 2023 After the Supreme Court ruling, the Biden administration unveiled a yearlong grace period starting this fall, insulating borrowers from near-term consequences for nonpayment even while interest begins to accrue again starting Sept. 1. Sara Ruberg, NBC News, 5 Aug. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'grace period.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1907, in the meaning defined above

Time Traveler
The first known use of grace period was in 1907

Dictionary Entries Near grace period

Cite this Entry

“Grace period.” Dictionary, Merriam-Webster, Accessed 25 Sep. 2023.

Legal Definition

grace period

grace pe·​ri·​od
: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as
: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty
: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace

More from Merriam-Webster on grace period

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